xLight has signed a $150 million Letter of Intent with the U.S. Department of Commerce, marking the first CHIPS Act research award under President Donald Trump’s administration.

What’s Related

The Palo Alto-based company is building ultra-powerful lasers for chipmaking. The funding is expected to support construction of xLight’s first free-electron laser system at the Albany Nanotech Complex in New York, a major hub for semiconductor research.

“This award is the first from the Trump Administration’s CHIPS Research and Development Office,” the company said, calling it a sign that advanced chipmaking tools are now a top national priority.

“The future of semiconductor manufacturing hinges on lithography, and we are grateful for the support of the Trump Administration, Secretary Lutnick, and Deputy Secretary Dabbar, and their vision to drive innovation and restore American leadership in advanced semiconductor manufacturing,” said Nicholas Kelez, CEO and CTO of xLight. “With the support from Commerce, our investors, and development partners, xLight is building its first free-electron laser system at the Albany Nanotech Complex, where the world’s best lithography capabilities will enable the research and development that will define the future of chip manufacturing.”

“Reviving Moore’s Law and restoring American leadership in light is a once-in-a-generation opportunity, and with the support of the federal government, xLight will turn opportunity into reality,” said Pat Gelsinger, Executive Chairman of the Board at xLight and a General Partner at Playground Global. “Building an energy-efficient EUV laser with tenfold improvements over today’s technology will drive the next era of Moore’s Law, accelerating fab productivity, while developing a critical domestic capability.”

Under the CHIPS and Science Act, Congress has backed a wave of new semiconductor plants and production hubs across the United States. For example, Amkor is building a $2 billion chip packaging facility in Arizona under CHIPS support. Supply Chain 247 Entegris also secured $75 million to expand critical component manufacturing in Colorado. Meanwhile, TSMC is ramping up its U.S. footprint: its Arizona expansion, backed by CHIPS incentives, reflects the broader push to bring advanced chipmaking back to American soil. 

But future plans have been essentially put on hold by the Trump administration until this recent announcement.

Next steps include coordination with the Department of Commerce and partners at the Albany Nanotech Complex. More details are expected in the months ahead. xLight is also continuing research work with several national labs, including Argonne, Fermilab, Jefferson Lab, Los Alamos, Oak Ridge, SLAC, Old Dominion University, and Cornell University.

“The Department of Commerce and other federal partner participation will help to validate and rapidly accelerate the commercialization of this novel domestic light source for current and future state-of-the-art semiconductor lithography,” added Deputy Secretary of Commerce Paul Dabbar.